When certain employees are terminated from their jobs, they may be offered a severance agreement when they leave. While this may seem unimportant, it can be critical to ensure a lawyer looking over these agreements before you sign them, whether you are an employer or an employee. But why exactly do you need a lawyer to help you negotiate your severance agreement?
What is a Severance Agreement?
In simple terms, a severance agreement (also known as a separation agreement) is a type of contract that is signed between an employer and an employee when the employee is involuntarily dismissed from their position. While severance agreements are not mandatory, some employers may offer them in situations where an employee is particularly valued, or where they had significant access to sensitive or confidential information. They can also be used to settle any ongoing dispute that may exist between the employer or employee at the time of their termination.
What Issues Are Negotiated in a Severance Agreement?
At its most basic, a severance agreement will include terms dictating the compensation an employee will receive upon their termination, which may include money, stock options, or access to benefits such as employer-provided healthcare. It can also deal with ongoing issues related to confidential information or trade secrets, including requiring non-disclosure of that sensitive information. Finally, it can also limit an employee’s ability to compete with the employer through a non-compete clause or other similar language.
What Might Happen if You Try to Write a Severance Agreement Yourself?
Like any other contract, a severance agreement can be incredibly complex from a legal standpoint, but some people will try to use an existing form contract or even try to write it themselves. This is a bad idea, however, since it opens up the possibility of some kind of serious error, such as a critical clause being left out or a loophole being accidentally included. This can deprive an employee of their hard-earned benefits, or leave an employer legally exposed to future liability.
What Should You Do?
The best way to protect yourself from this kind of a nightmare scenario is to speak to a lawyer with experience handling employment law matters. They can review your severance agreement to ensure it suits your personal needs. The sooner you call, the sooner they can get to work for you.
If you have an employment issue, give the Law Office of Andrew Ross Sack a call. Andrew Ross Sack is a New York and New Jersey employment lawyer who has considerable experience in handling the many aspects of labor and employment law. To schedule a consultation with New York City/Long Island/Westchester employment lawyer Andrew Ross Sack, call (516) 526-3319 or visit his contact page.
